How to Get Lower Car Insurance: Everything You Need to Know

Car insurance can be expensive. It's one of those mandatory monthly bills, but there are ways to save. From improving your driving habits to bundling your policy and adding discounts, you can take several steps to lower your premiums. If you want to learn how to get lower car insurance, the tips below will help.

Mindful Driving

Driving safely equates to lower premiums. Today's fast-paced digital age brings an increasing number of distractions. When you're in the driver's seat, you might be tempted to check your text messages or call ahead to that appointment when you're running late. By being more mindful on the road, you can avoid moving violations and accidents — two events that raise your rates.

Shop Around

Insurance rates vary significantly between carriers, so it pays to shop around. The Insurance Information Institute recommends getting quotes from at least three companies before you make your decision. Use the internet, or call your local agent. Analyze like coverages so you're looking at an apples-to-apples comparison, or ask your state's insurance department for assistance.

Always avoid adding more coverage than you need. If you have an older car, do you really need comprehensive protection? Some agents add a ton of bells and whistles, such as roadside assistance and rental car coverage, to a policy. Review all your estimates line by line, and ask your agent to requote the policy after you remove options you don't need.

Do Your Research

Don't let price be your only factor when choosing an insurance company. MoneyUnder30.com recommends checking each company's performance history once you've narrowed down your list. Do you see many consumer complaints online? Did the agent take the time to answer all your questions? You can also ask friends and relatives for their recommendations.

You buy auto insurance to protect your financial peace of mind. Therefore, you want a stable carrier. Check the financial health of your top prospects with a rating company like AM Best.

Shop Before You Buy

Buying a new-to-you car is an exciting experience. However, it's best to get an idea of how much the insurance is going to cost before you bring it home.

Companies base car insurance premiums on several factors, including how much the car is worth, how expensive it is to repair, its overall safety record, its anti-theft devices, and its driver assistance and safety features. Adding safety features such as lane-keeping assist and forward-collision warning could save you big over the course of your relationship with your insurer.

Keep in mind that larger cars like that big, fully loaded SUV might be more expensive to insure than subcompacts. Some policy discounts are also available for hybrid or alternative fuel vehicles as incentives to go green.

Bumping up your deductible from $200 to $500, for instance, can result in as much as a 30-percent discount on your collision and comprehensive coverage, according to Investopedia. Going to a $1000 deductible will save you even more — as much as 40 percent or more. Just make sure you have a nest egg set aside to cover these costs in the event of an accident.

Bundle Your Policies

Why not buy your homeowners and auto policies from the same company? Many carriers offer a break on their rates if you buy more than one kind of insurance. You might earn another decrease if you own two or more vehicles or if you've been a long-time customer. It still makes sense to shop around. However, the chances are good that you'll save with a multipolicy plan.

Ask your boss about group insurance. If you can get insurance through your employer, professional organization, or alumni group, you could be entitled to a substantial break on your rates.

Check Your Credit

A good credit file can cut your insurance costs. Most companies use credit information to price their auto policies. According to Ramit Sethi, research shows that people with good credit have fewer claims. Check your credit regularly, and always pay your bills on time. It's also helpful to keep your credit balances low and avoid taking out more credit than you need. Promptly report any error on your file to the reporting agency so your credit report is an accurate reflection of your payment history.

Low Mileage Discounts

If you have a short commute, you could save even more. You might benefit from the low mileage discounts most insurers offer. Whether you carpool to work, ride your bike to the store, or simply drive a lower-than-average number of miles each year, you owe it to yourself to cash in.

Look for Other Options

Ask your agent about other discounts. A few companies offer reductions to policyholders who haven't had accidents or traffic tickets for a certain number of years — usually between three and five. If you do have moving violations, consider taking a defensive driving course.

If you have teenagers behind the wheel, consider enrolling them in a driver's education course at school, and ask about discounts for good grades. The Balance reports that if your child's grades are a B average or above, you might be able to get a discount ranging from 6 to 20 percent.

Location Matters

It might come as a surprise to many drivers that location matters when buying insurance. Michigan is the most expensive state, while Maine is the cheapest, according to U.S. News & World Report. Of course, you probably don't want to move out of state just to save. If you live in a big city, expect to pay more than someone who lives in a rural area due largely to the higher risk of accidents on congested roadways and, unfortunately, a significant increase in the chance of theft or vandalism.

Whether you're shopping around for a new car or it's time to renew your policy, you've got the information you need. With this handy guide, you now know how to get lower car insurance.

This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io

This commenting section is created and maintained by a third party, and imported onto this page. You may be able to find more information on their web site.